Form 8949 is used to report the following information:

• The sale or exchange of a capital asset not reported elsewhere in the tax return.
• Gain from involuntary conversion (other than from casualty or theft) of a nonbusiness capital asset.
• Nonbusiness bad debt.
• The worthlessness of a security.
• The election to defer capital gain invested in a qualified opportunity fund (QOF).
• The disposition of interest in a QOF.

When entering information in the Form 8949 menu in Software, always enter exactly what shows on the form or statement for the sales price and cost basis. If any adjustments are needed, you'll be provided with separate menu lines for making those adjustments. The summary of the transactions reported on Form 8949 flows to Schedule D.

A 1099-B reporting a regulated futures contract, a foreign currency contract, or a section 1256 option contract only will include information in Boxes 1a, 8-11, and possibly 4. Enter this information directly on Form 6781, Gains and Losses From Section 1256 Contracts and Straddles. 

To complete Form 8949 and Schedule D, from the Federal Section of the tax return (Form 1040) select:

• Income
• Capital Gains and Losses
• Capital Gains and Loss Items - For a MFJ return, select if for the taxpayer, the spouse, or both.
• Description of Property - Use a description similar to the description on Form 1099-B.
• For stock, indicate the ticker symbol and number of shares, e.g., 100 SHARES XYZ.
• For virtual currency, include the name and amount.
• For a regulated futures contract, enter RFC.
• For a Section 1256 option, enter SECTION 1256 OPTION.
• For a QOF, enter only the EIN of the QOF.
• Date Acquired - If reported on Form 1099-B, enter the date in Box 1b. The date may be missing if the securities were noncovered (Box 5 is checked) or if they were purchased on various dates. In these situations the taxpayer may need to provide more information. If necessary, select the Alternate Option check box and choose one of the dropdown menu options:
• Various - Short-Term - Securities purchased on various dates but all within 1 year of the sale date.
• Various - Long-Term - Securities purchased on various dates but all more than 1 year before the sale date.
• Inherited - Long-Term - Virtually all inherited assets would use this for date acquired.
• Date Sold - If reported on Form 1099-B, use the date in Box 1c.
  
  Check the "Check here if a short sale" box if the Form 1099-B reflects the proceeds of a pre-2011 short sale.
  
  If necessary, select the Alternate Option check box and choose one of the dropdown menu options:
• Bankrupt - Short-Term
  Bankrupt - Long-Term - Example: Nonbusiness bad debt due to bankruptcy.
• Worthless - Short-Term
  Worthless - Long-Term - A security is worthless if it has no value, but it can also include a security the taxpayer has abandoned.
• Sales Price - If reported on Form 1099-B, enter the amount in Box 1d.
• Alternate Option - If the security sold is either expired or worthless, select the Alternate Option check box and choose either Expired or Worthless.
• Select cost basis type - three options are available:
• Box 12 Cost Basis Reported to the IRS - Select if the check box in Box 12 (after 2018) or Box 3 (2018 and prior) is checked.
• Box 12 Cost Basis NOT Reported to the IRS - Select if the check box in Box 12 (after 2018) or Box 3 (2018 and prior) is not checked.
• Form 1099-B Not Received - Select this if the transaction was not reported on Form 1099-B, e.g., reported on Form 1099-S or not reported on any form.
• Is the transaction a Short Term Section 1061 Partnership Interest? - Check this box to recharacterize the capital gain from a section 1061 transaction from long-term to short-term due to not meeting the 3-year holding rule. See IRS Publication 541 here for more information.
• Cost - If reported on Form 1099-B, use the date in Box 1e.
  
  If the security sold was expired, select Alternate Option and choose Expired from the drop down menu.
  
  
• Adjustments - If an adjustment code is indicated on Form 1099-B Box 1g, or an adjustment code of "W" is indicated on the brokerage statement, or an adjustment is otherwise required, enter the amount and select the appropriate code.
  
  For example, if the transaction has an adjustment code of "W" for wash sale, select W and enter the nondeductible loss amount in the Adjustments field as a positive number.
  
  See IRS instructions for Form 8949 here for an explanation of all the adjustment codes.
  
  
• Collectible Exchange - Check the "Is this a Collectible Exchange?" box if this transaction is a long-term gain or deductible long-term loss from the sale or exchange of a collectible that is a capital asset. This will bring the the transaction into the 28% Rate Gain Worksheet.

When finished with the transaction, click either Save & Enter Another if you have another capital gain or loss transaction to enter, otherwise click Continue.

Caveats:

• Multiple Forms 8949 may be present in the tax return, as each "Form 1099-B type" is reported on its own form.
• QOF investments should be listed separately by investment, with one exception: investments of eligible capital gains of the same character on the same date into the same QOF can be grouped into a single entry.